Additionally, Eichholtz supplied the index in both nominal and “real” (inflation adjusted) terms resulting in probably the most striking outcome of the entire body of research.

Looking at the charts below (click for ultra-dynamic zoomable version) you can see that while in nominal terms home prices experienced various large run-ups, particularly after 1900, in “real” terms housing experienced little to no appreciation.

This study offers solid evidence that although within a single lifespan housing prices may fluctuate dramatically and even present periods where prices appear to climb without end, in the long run, prices stay, more or less, in-line with general price and wage inflation.